What is the insufficient funds fee charged by Cream?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks 1, 2 |
|---|---|---|---|
| Interest on Late Payment | Lesser of 1.5% per month or the highest commercial contract rate allowed by law | As incurred | All amounts which you owe us for any reason will bear interest accruing as of their due dates until payment is received in full. |
| Insufficient Funds Fee | Lesser of $100 or the highest amount permitted by applicable law, per occurrence | As incurred | We will charge you the lesser of our then-current fee, or the highest amount permitted by applicable law, per occurrence, for checks returned to us due to insufficient funds or in the event there are insufficient funds in the business account you designate to cover our withdrawals. |
| Transfer Fee | $25,000 | As incurred, prior to approval of transfer | You must pay this fee as one of the conditions of transferring your Shop and/or your Franchise Agreement and/or Area Development Agreement to another person we approve (other than to a wholly- owned and controlled entity, or if the transfer is from a deceased owner to a surviving spouse, though in such cases you must still reimburse us our processing costs, including legal fees). |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the insufficient funds fee is the lesser of $100 or the highest amount permitted by applicable law, per occurrence. This fee is incurred if a check is returned due to insufficient funds or if there are insufficient funds in the designated business account to cover Cream's withdrawals.
For a prospective Cream franchisee, this means that if a payment to Cream is rejected due to insufficient funds, they will be charged a fee. The fee will not exceed $100, but could be lower depending on state or local laws that may set a lower maximum for such fees. This fee applies each time a payment is rejected.
Cream requires all payments to be made through electronic debit of the franchisee's business account. Franchisees must ensure that sufficient funds are available in their account to cover these withdrawals. Cream may change the timing, frequency, and intervals of payments with at least 30 days' prior written notice. This policy aims to ensure timely payments and avoid disruptions in the financial relationship between Cream and its franchisees.